UMTS Forum Predicts a Billion Connected Devices by 2016

Posted on: 24 January 2011

By:chw staff

The UMTS FORUM has released a new report that predicts the global existence of one billion Consumer Electronics (CE) devices connected to mobile broadband networks by 2016. Titled “Two Worlds Connected: Consumer Electronics Meets Mobile Broadband”, the report explores the relationships between the CE and Cellular industries. It predicts that CE device connectivity will outstrip overall wireless market growth over the next five years.

Some of the questions the report tries to answer were: Which specialised devices, potentially intrinsic to vertical markets, will emerge for the connected consumer? What is the state of in-home connectivity today? What is the impact of consumer electronics-focused devices on the mobile industry’s value chain?

The findings include: There is no doubt that Consumer Electronics (CE) devices are becoming increasingly connected. The CE industry is in flux and must quickly “connect or perish”; Cloud- and media server-based solutions will coexist; Business models are very much the key barrier to mobile broadband enabled CE devices on a large scale. Operators thus need to regain their pivotal role in the ecosystem and to stimulate the development of mobile-enabled CE, rather than relying on the main impetus from CE vendors. A collaborative approach between operators and CE vendors will contribute creating a sustainable service business.

“The future growth of the mobile communications and CE industries are intrinsically linked”, said UMTS Forum Chairman Jean-Pierre Bienaimé. “Over the next few years, mobile broadband will enable the cost-effective deployment of ‘always on’ devices for the consumer. The largest area for future growth in mobile communications is in devices like gaming consoles, e-reading devices, in-vehicle entertainment, home appliances and healthcare.”